by Calculated Risk on 1/22/2011 02:39:00 PM

From Reuters: Don't rule out debt buy-back idea: Juncker (ht Rajesh)

European leaders should not shy away from a proposal to buy back the bonds of troubled euro member states but should not rely too much on rich countries, Eurogroup Chief Jean-Claude Juncker said.

"It would be wrong to create taboos but we cannot overstretch the strong countries," Juncker said in an interview with German magazine Der Spiegel seen by Reuters on Saturday ahead of publication.

I'm not sure if this proposal will go anywhere, but many analysts like the idea of Greece buying their debt with money from EFSF.

by Calculated Risk on 1/22/2011 08:42:00 AM

Note: this is an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for Jan 21, 2011.

Changes and comments from surferdude808:

The OCC finally released its actions through the middle of December 2010 as we have been waiting for the past two weeks. By and large, the OCC actions were the conversion of Formal Agreements to Consent Orders for six national banks with only one new entrant. The major changes this week result from the publication of nine actions issued by the Illinois Department of Financial & Professional Regulation. We applaud the transparency of the Illinois Department as they are the only state banking authority that publishes its safety & soundness enforcement actions against banks.

This week there are 11 additions and seven removals. The changes result in the Unofficial Problem Bank List having 937 institutions with assets of $409.4 billion, compared with 933 institutions and assets of $410.4 billion last week.

The seven removals include the four failures this week -- United Western Bank, Denver, CO ($2.1 billion Ticker: UWBK); CommunitySouth Bank and Trust, Easley, SC ($441 million Ticker: CBSO); The Bank of Asheville, Asheville, NC ($195 million Ticker: WFSC); and Enterprise Banking Company, McDonough, GA ($101 million). The other removals are Pacific Valley Bank, Salinas, CA ($172 million Ticker: PVBK), which announced in a press release that the FDIC had terminated its Consent Order and two problem banks that were acquired in unassisted transactions in December 2010 -- First National Bank of Chester County, West Chester, PA ($1.1 billion); and ShoreBank, Pacific, Ilwaco, WA ($180 million).

The new additions from the OCC and OTS are Amfirst Bank, National Association, McCook, NE ($254 million); and The Oculina Bank, Fort Pierce, FL ($133 million), respectively. The Illinois Department issued actions against Edens Bank, Wilmette, IL ($259 million); and eight banking subsidiaries of Metropolitan Bank Group, Inc. -- Archer Bank, Chicago, IL ($608 million); North Community Bank, Chicago, IL ($502 million); Plaza Bank, Norridge, IL ($374 million); Metropolitan Bank and Trust Company, Chicago, IL ($323 million); Chicago Community Bank, Chicago, Il ($297 million); The First Commercial Bank, Chicago, IL ($278 million); Citizens Community Bank of Illinois, Berwyn, IL ($218 million); and Community Bank of DuPage, Downers, IL ($61 million).

Next week, we anticipate for the FDIC to release its actions for December 2010, until then try to practice safe banking.

by Calculated Risk on 1/21/2011 09:17:00 PM

From Nick Timiraos at the WSJ: Fannie-Freddie Report Likely to Be Late

The administration now plans to release the report by mid-February ... once a final report is released it is likely to contain two or three proposals for what should replace Fannie and Freddie ...

One of the proposals will outline a way for the government to continue backing certain mortgage-backed securities, while another will discuss how to structure a market with no government guarantees. ... any transition period could take between 15 and 20 years, according to Barclays.

There is no easy solution. Some limited and explicit guarantee is probably what will happen.

by Calculated Risk on 1/21/2011 07:11:00 PM

From the FDIC: First-Citizens Bank & Trust Company, Raleigh, North Carolina, Assumes All of the Deposits of United Western Bank, Denver, Colorado

As of September 30, 2010, United Western Bank had approximately $2.05 billion in total assets and $1.65 billion in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $312.8 million. .... United Western Bank is the seventh FDIC-insured institution to fail in the nation this year, and the first in Colorado.

That makes four today - and this one with two billion in assets.

by Calculated Risk on 1/21/2011 06:09:00 PM

From the FDIC: FDIC Creates the Deposit Insurance National Bank of McDonough to Protect Insured Depositors of Enterprise Banking Company, McDonough, Georgia

As of September 30, 2010, Enterprise Banking Company had $100.9 million in total assets and $95.5 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $39.6 million. Enterprise Banking Company is the fourth FDIC-insured institution to fail in the nation this year, and the second in Georgia.

From the FDIC: Certusbank, National Association, Easley, South Carolina, Assumes All of the Deposits of CommunitySouth Bank and Trust, Easley, South Carolina

As of September 30, 2010, CommunitySouth Bank and Trust had approximately $440.6 million in total assets and $402.4 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $46.3 million. ... CommunitySouth Bank and Trust is the fifth FDIC-insured institution to fail in the nation this year, and the first in South Carolina.

From the FDIC: First Bank, Troy, North Carolina, Assumes All of the Deposits of the Bank of Asheville, Asheville, North Carolina

As of September 30, 2010, The Bank of Asheville had approximately $195.1 million in total assets and $188.3 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $56.2 million. ... The Bank of Asheville is the sixth FDIC-insured institution to fail in the nation this year, and the first in North Carolina.

No buyer for Enterprise Banking ...

by Calculated Risk on 1/21/2011 04:26:00 PM

Merle will be performing on PBS Making Sense with Paul Solman next week. He has written several songs about European countries. Should be fun ...

Monday: Spain
Tuesday: Ireland
Wednesday: Italy
Thursday: Germany
Friday: Greece